The necessary evil

When discussing sports sponsorships, there are two types of fans: those who think they are a necessary evil and those who think they are just unnecessary. There are few who accept and even fewer who value them.

The reality is that the sport that you and I enjoy, whatever it is, exists only thanks to the investments of sponsors and media.

In any sports organization, these are the two sources of income that pay almost all bills. Well-organized events, well-paid and well-trained athletes, quality broadcasting on television or digital platforms, salaries for those working in federations, scholarships for high-performance athletes, etc. All of this is only possible thanks to commercial partners.

Do you like watching your country playing in the FIFA World Cup? Are you moved when athletes step up the highest level of the Olympic podium? Do you love to see European teams and teams playing UEFA Euro or the Champions League? Sponsorship and media are paying for 75% of its cost at FIFA, 91% for the International Olympic Committee, and 98% UEFA (source: FIFA, IOC, and UEFA financial reports).

The above data may confirm the need, but it does nothing to make sponsors welcome in clubs, leagues, and events. Despite my natural disagreement, I understand that all this negativity has a very good reason for existing. And sports marketing professionals are largely responsible for it.

Good sponsorships are simple. They help with image building and sales.

When done well, they add value to fans’ experience making sports consumption even better. In the long run, they positively influence the perception among the fans. Grateful, they will, more often than not, translate this love into consumption.

The sponsoring brands also benefit from promotional practices that impact the short term. The traditional mechanics that reward consumption or encourage it with prizes may not be sophisticated, but they are very useful for increasing the ROI.

Despite being done with the best intentions, many sponsorships end up creating problems and negatively impacting the reputation of companies. There is no shortage of examples around the world.

Some sponsors simply don’t get it. Assuming they deserve fans' gratitude, they end up thinking only of themselves. They miss the point that money will never buy loyalty. Sponsors come and go. The love for the club is eternal.

To be a good sponsor, just follow a few rules.

Listen to those who care.

Consult with a broad range of constituents: board members, fans, employees, the press, business partners, etc. The exercise will help you understand what the expectations and opportunities for a sponsor are, in addition to its investments.

Be useful.

There are many ways to help rightsholders, employees, and fans. A financial services company, for example, can offer free financial education to fans, manage the club’s accounts with lower fees and commissions, provide high net worth financial planning services to players, etc. These are actions simultaneously aligned with the businesses and delivering a tangible positive impact on many stakeholders

Respect traditions and icons.

The brand on the shirt is always an unwanted intrusion. If this is the reason for the sponsorship, do it respectfully. Involve the fans and the apparel supplier in the design, resist the temptation to oversizing or placing too many logos on the uniform. Remember, this is not NASCAR and the less the better. On some special dates, such as the club's anniversary, consider removing the mark altogether to honor them allowing them to play like in the old times. Fans will see and appreciate the action.

If your brand doesn't follow these rules, don't pretend that the problem doesn't exist. The club needs you as much as you need it. It's never late to start.